Blockchains will have enormous value in the future. When I make that claim, I am not referring to a few hundred million dollars. We are looking at the trillions in value. Bitcoin is not going to be the only one to reach the valuation that starts with a "T".
This is not going to be based (solely) on market activity. There will be valid reasons for this ascension.
Because of this, a network like Hive offers tremendous opportunity due to the value proposition it provides. In a world where we are moving towards an agentic Internet, networks of this type are crucial.
I think the future of AI agents is blockchain. That does not mean it is required. Traditional rails could handle the activity, to some degree. There are a few limitations which will be discussed in an upcoming article.
One major issue is micropayments. This is something that traditional systems are hindered by. AI agents are going to process large volumes of transactions, often with minimal financial impact on each.
When it comes to Hive, there is tremendous opportunity.
Hive's Massive Value Proposition
So far, Hive is overlooked by the market. There is very little of interest for the masses.
That said, if we dig into the basic components of the network, we can see some alignment with an agentic future.
One of the main drawbacks to blockchain is speed. This is being addressed by many newer networks. It is not uncommon to see some having blocks in under a second. This is much improved over Bitcoin and Ethereum networks.
While speed is vital, cost is another. Here is where the conversation tends to wane. However, I feel it is the crux of the entire process.
Blockchains are databases. That means data is written. In the financial arena, this is not problem. That world is accustom to transaction fees.
Anytime data is written, there is a cost. When someone does a Facebook post, Meta is covering the cost of writing to its servers. The cost of operation is built in.
With blockchain, there is no hiding the cost. If you want to write to Ethereum, regardless of what the data, a transaction fee is required.
Hive has a system where the transaction fee is "hidden". Naturally, there is still a cost. This is hidden by the fact that someone can "pay" via staking. Through a non-tradeable token that is acquired by staking the main coin, one is able to transact in a manner where the direct transaction costs are removed.
Under this rechargeable system, transactions are not an expense. Instead, one makes an investment into the ecosystem, allowing for participation.
Effectively, the base layer coin became an access token.
AI Agents and Cost
AI agents are going to need settlement. This is no different than any other transaction.
Blockchains can operate as settlement layers. In fact, they excel in this area due to the immutable nature.
Once again, speed is key. Moving past that, we have the tx fee issue. If a bunch of AI agents are developed on Ethereum, to settle might require $10 or $20 depending upon the traffic. For a financial transactions of thousands of dollars, this is not a problem.
The problem arises when we look at microtransactions. It will not be uncommon for AI agents to be operating in fractions of a penny. This means a tenth of a cent might be the entire transaction value. How can most networks handle this?
Hive has no problem with something like this. As a settlement layer, the lack of direct fees make it ideal. This same premise applies to data storage. Imagine having to pay a few cents each time you hit "save" on your computer when working with documents.
This is what basically happens with blockchain.
Hive Backed Dollar
The other value proposition regarding Hive is the Hive Backed Dollar (HBD). This is another fundamental concepts that is going to really benefit from AI agents.
Stablecoins will be the currency used by these agents. This means the provides, i.e. companies like Circle, stand to benefit greatly.
Hive is an issuer of its own stablecoin, HBD. This is coded into the blockchain, operating in a truly decentralized manner. While there is no company behind it, the value garnered will be pushed to the network.
The key is to have the infrastructure that can support agentic activities. Since the coin is native to the chain, the infrastructure is already in place. It is not born out of smart contracts, requiring tie into to infrastructure that can process the automation activities.
HBD operates at the base layer. Developers can create any wallet system they desire, pulling from the chain, to fulfill any agentic needs. Reverting back to settlement, this is built in since all recording of coin movement is base layer. While derivatives could be designed elsewhere, it is not necessary for transacting. The network is designed to handle these transactions.
Scalability
One of the questions that arises when discussing blockchain is the ability to scale. Early systems, Bitcoin and Ethereum, ran into issues. With Hive, the question is not eliminated since it is impossible to answer.
Until scaling is required, few know what the limits are.
Can Hive handle hundreds of millions of transactions? This is not tested. So far, the chain has a couple million transactions per day. It is handled without issue.
Hence, we are left speculating whether a 10x in transactions is possible. Tests reveal these levels are possible. Of course, testing and real world use are two different animals.
From there, is another 10x possible?
As you can see, this would be an ongoing process. Consider the volume of activity that will be generated from tens of billions of AI agents. Naturally, not all of these will be on blockchain but they will be out there. They will run 24/7/365. We will see trillions of transactions.
Hive will need to scale. Fortunately, we are not at that point yet. There is time for the entire industry to expand in this area.
In Conclusion
There will be tremendous value in decentralized networks.
We are moving towards a future where compute, bandwidth, and storage capacity will be vital. Most are aware of how much data is generated on a daily basis. The majority is stored on centralized systems.
That said, a lot more is required. Humanity is also at a crossroads where it has to decide whether to accept a future where Big Tech has control of everything. Decentralization is the solution.
With the advancement in AI, developing AI agents is getting easier. Over time, the masses will be able to generate what is required. These will need a home.
Companies such as Coinbase already seek to be that destination for people. This is no better, in my view, than Meta or Google. Here we are just switching chairs on the Titanic.
Blockchain counters this. While the throughput and storage expanded greatly over the last 5 years, it is still minimal compared to the market. Hive could step in due to its fundamental attributes which offer powerful solutions.
For this reason, there is enormous value that can be captured. Most overlook this fact.
The next generation Internet is not human-to-human activity. It will be mostly computer-to-computer. This means networks that cater to this need will capture the value.
Posted Using InLeo Alpha
I find Hive's "hidden" fee most attractive.
It is something that has great potential. There is a lot that gets negated with direct transaction fees.
Yeah, especially microtransactions would have difficulty.
Don't forget that you can earn from "the currency from hidden fees" (which is Resource Credits) by leasing them (such as on Hive Engine). 🤓😏
!WEIRD !INDEED !DIY
Oh, I didn't know that!
!LOLZ
lolztoken.com
You ain't seen muffin yet.
Credit: reddit
@savvytester, I sent you an $LOLZ on behalf of rzc24-nftbbg
(6/10)
Looks like you got distracted from such features from the time Resource Credit delegations became supported (since the 27th Hive Hard Fork). 😆😅
I don't know about the 26th. How much more on the 27th? 😆
Resource Credit delegations were actually allowed starting from the 26th Hive Hard fork, but we didn't experience the 26th HF long enough before the next one because of some major technical problems that needed to be resolved using another fork. 🤓😏
!PIZZA !BBH !DIY
Thanks for the info.
!PIZZA
@rzc24-nftbbg! @savvytester likes your content! so I just sent 1 BBH to your account on behalf of @savvytester. (1/1)
(html comment removed:
)
You can query your personal balance by
!DIYSTATSYou can query your personal balance by
!DIYSTATS(2/10)
@rzc24-nftbbg! @savvytester Wants to spread Hope! so I just sent 1 HOP to your account on behalf of @savvytester.
Since we think the world can use more Hope, you can now already start spreading Hope yourself!
(22/25)
@rzc24-nftbbg! @savvytester Totally agrees with your content! so I just sent 1 IDD to your account on behalf of @savvytester.
You can query your personal balance by
!DIYSTATSThis is somewhat true but most like most things, there needs to be people to build the damn thing. The tools are there, the potential is there, but there is nobody building it and making money off it. Yes, Hive could be a great information backup center for plain text files for Enterprise systems that want to save and hold their data remotely. It could also be a great cyber security tool as it can also be a last resource against crypto ransom attacks, or even like you said, a data later for some large or short language models.
But for that to work, we need a finding engine that can take care of the companies that will go forward into the Enterprise world and sell the products.
20 years ago, Enterprise didn't trust cloud, so if was a hard sell until Google and Amazon took over. 10 years ago, Enterprise didn't trust public Blockchains, or Blockchains all together until JP Morgan and IBM pushed hyperledger, Quorum and other private Blockchains. I'm not sure if Enterprise have realized the value of using a public Blockchain like Ethereum or Solana, but I'm not hearing a bull run on public Blockchain like Hive building solutions for the Enterprise market.
I would love to see if you have seen any company doing that and succeeding even if it's not Hive. Maybe liquid or Hedera? I know EOS did gain a foot in the IDB (international Development bank) 1 for cross-border payments between tokenized US dollars and Dominican Pesos.
Any Proof Of concept for Blockchain for current AI startups relying on Blockchain as a storage rather than tokenized data would be great.
What you state is true for most of Web 3.0. A lot of potential but not a great deal of building. Applications are scarce outside of the financial arena although a case could be made things are lacking greatly.
As for enterprise, there is a major issue: privacy. A lot of enterprise data simply is not for public eyeballs. But the analogy holds strong, cloud was resisted for years by enterprise...until it wasnt.
This article is a masterpiece. I understood some things about HIVE that I had not fully understood yet. Thank you for the things you teach us. Here in Italy still few can understand the real value of decentralization, but with time things will change
You've done well at raising important points about the scalability of blockchain networks like Hive in an increasingly automated future.
As the demand for decentralized solutions grows with AI integration, it's crucial to prioritize testing and innovation in scalability to ensure these networks can handle the impending surge in transactions.
What @peakd has already done with AI image generation micropayments is amazing. More front ends should explore a similar model to earn some extra $HBD for themselves. __The added benefit is that HIVE gets to position itself in the AI niche. Most people do not care about the details. If they see $HBD being used for AI from HIVE front ends logged in with a HIVE account, they could start viewing HIVE as part of the AI hype train.
They became a front end for ChatGPT. That is something that most of the apps, with a bit of development can do.
There is one that is actually training their own model.
I'm cannot wait for the launch of LEO AI.
This post has been manually curated by @steemflow from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @steemflow by upvoting this comment and support the community by voting the posts made by @indiaunited.
brother and if you create your own meme coin and promote it here on the peakd platform for each purchase and sale of the token 8% will be charged that will go to pay interest when you leave the coin in staking and burn the coin between 2% to 1% per year until it reaches half of the total supply of the meme coin there are many interesting networks 🤑🤑😊😊😍
https://inleo.io/threads/view/omarrojas/re-leothreads-oqqmbxtx?referral=omarrojas
!PIZZA
$PIZZA slices delivered:
@rzc24-nftbbg(5/5) tipped @savvytester
savvytester tipped rzc24-nftbbg
danzocal tipped taskmaster4450
I remain confident that Hive will grow.
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 80000 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts:
Very good article, thanks for writing, i will share.
If you want to trade with HIVE & HBD anonymously & privately, then derivatives would be necessary, and that will be possible soon with the aid od Zano & Confidential Layer. But not suitable for micro-payments as there will be (small) fees.
It's such a great article to learn more about Hive and HBD and how this chain works. I've seen people complaining about ether transaction fees adn they expect the txn few to be lowered but I am surprised that why not many people choose hive where transactions are free and there's no fee involved. Like you mentioned that there's is cost for everything but in the case of Hive, it's hidden.
What do you think we are missing that is stopping hive to go mainstream and what should be the right approach to get more people and projects coming to hive chain?